Adjusted Gross Income (AGI)
Income on which an individual computes federal income tax. It is determined by
subtracting certain allowable adjustments from gross income.
Activities of Daily Living (ADL)
The self-care and mobility skills required for independence in normal everyday living.
This does not include recreational or sports activities. (Bathing, eating, dressing,
transferring from bed to chair, toileting, continence or severe cognitive impairment)
Care rendered in the course of treating an illness, injury or condition marked by a
sudden onset or change of status requiring prompt attention, which may include
hospitalization. It is limited in duration and is not expected to last indefinitely.
A person appointed by the court to settle an estate when there is no will.
The return from an investment after the effects of taxes have been taken into account.
Written statement made under oath before an authorized person, such as a notary
Alternative Minimum Tax (AMT)
A method of calculating income tax that disallows certain deductions, credits, and
exclusions. This was intended to ensure that individuals, trusts, and estates that
benefit from tax preferences do not escape all federal income tax liability. People must
calculate their taxes both ways and pay the greater of the two.
An insurance-based contract that provides future payments at regular intervals in
exchange for current premiums. Annuity contracts are usually purchased from banks,
credit unions, brokerage firms, or insurance companies.
Also known as an EIA. An annuity that offers both a guarantee of principal and
earnings linked to the upside movement of an equity index. EIA's have characteristics
of both fixed and variable annuities. EIA's offer a guaranteed interest rate and have
the potential of earning more that a fixed annuity. In exchange for this potential reward
these annuities may cap the potential gain on your investment to certain percentage.
In addition, if you surrender your EIA early, you may have to pay a significant
surrender charge and a 10% tax penalty.
Flexible contributions may be made as often and in whatever amounts the contract
owner desires; benefits begin one year from the date of purchase. Deferred annuities
are normally purchased to defer taxes on growth and accumulation, such as a
A single premium (lump sum) is put into an account from which the annuitant will draw
the periodic benefits (funds) at some specific time in the future. Benefits begin more
than one year from the date of purchase.
A single premium (lump sum) is put into an account from which the annuitant may
immediately begin drawing benefits (funds). Funds to be drawn with a year of issue.
The immediate annuity essentially does not have an accumulation period.
Anything owned that has monetary value.
The process of repositioning assets within a portfolio to maximize return for a given
level of risk. This process is usually done using the historical performance of the asset
classes within sophisticated mathematical models.
A category of investments with similar characteristics.
The examination of the accounting and financial documents of a firm by an objective
professional. The audit is done to determine the records' accuracy, consistency, and
conformity to legal and accounting principles.
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